Skip to main content

Industry shifts into gear amid signs of easing shortages

Industry across Emerging Europe turned a corner in Q4 as auto production rebounded strongly. This comes amid signs that supply shortages are starting to ease; our proprietary shortages dashboard suggests that product shortages may have peaked. We think industry will continue to recover in the coming months as shortages ease gradually. But consumer-facing sectors struggled in Q4 due to rising virus cases, tighter restrictions, greater consumer caution and surging inflation. This is likely to remain the case early this year too, dampening activity in Q1. Many countries have made good progress rolling out third vaccine doses which should lessen the hit from the current Omicron wave and support the economic recovery in general, but the risk is that those countries with much lower vaccine coverage face continued headwinds to growth.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access